Tennessee Income Tax Calculator 2026

Tennessee has no state income tax. See how TN compensates with other taxes and what it means for your finances.

By Konstantin Iakovlev · Updated October 19, 2026 · Methodology

$
Deduction

Federal Income Tax

$7,670.00

Effective Tax Rate

10.23%

Marginal Tax Rate

22%

FICA (SS + Medicare)

$5,737.50

Total Tax Burden

$13,407.50

After-Tax Income

$61,592.50

Tax Calculation Breakdown

Gross Income$75,000.00
Above-the-Line Deductions- $0.00
Adjusted Gross Income (AGI)$75,000.00
Standard Deduction- $16,100.00
Taxable Income$58,900.00
10% on $0.00 – $12,400.00$1,240.00
12% on $12,400.00 – $50,400.00$4,560.00
22% on $50,400.00 – $105,700.00$1,870.00
Federal Income Tax (before credits)$7,670.00
Federal Income Tax (after credits)$7,670.00
Social Security (6.2%)$4,650.00
Medicare (1.45%)$1,087.50
Total FICA$5,737.50
Total Tax$13,407.50
After-Tax Annual Income$61,592.50
Monthly Take-Home$5,132.71

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

Tennessee Income Tax Overview

Tennessee belongs to the small group of states that levy no broad personal income tax. Wages, salaries, self-employment profit, capital gains, and retirement withdrawals are all untaxed at the state level. The Hall tax, which once applied a flat rate to certain interest and dividend income, was phased down over several years and fully repealed effective January 1, 2021, so today there is no Tennessee income tax of any kind and no individual state return to file.

Having no state income tax changes how taxes stack rather than how much federal tax you owe. In most states, federal income tax sits on top of a separate state layer; in Tennessee, the federal bracket is the only income tax on your earnings. You still file a Form 1040 with the IRS, still pay federal tax on the graduated brackets, and the self-employed still owe self-employment tax for Social Security and Medicare. Tennessee makes up the missing revenue mainly through its 7% sales tax, which shifts the cost from your paycheck to your purchases.

State Income Tax

0%

Tennessee has no state income tax

Tennessee Tax Snapshot

State Sales Tax 7.00%
Avg. Combined Sales Tax (with local) 9.61%
Avg. Property Tax 0.46%
Minimum Wage $7.25/hr

Official Sources:

Tennessee Income Tax FAQ

Does anyone owe Tennessee state income tax in 2026?
No. Tennessee taxes no form of personal income, and the former Hall tax on interest and dividends has been gone since the start of 2021. Residents do not file a state income tax return, whether their income comes from wages, a business, investments, or a pension. The only income tax a Tennessean pays is federal, owed to the IRS.
How does no state income tax change my total tax bill?
It removes the entire second layer that residents of most states carry. Your federal income tax is computed exactly the same way it would be anywhere, but there is no Tennessee tax stacked on top of it. The practical effect is that more of your income tax burden is federal and a larger share of your overall taxes shows up at the register through sales tax instead.
I live in Tennessee but earn money in another state. Am I taxed?
Tennessee will not tax it, but the state where you physically work or own rental property may impose its own income tax on income sourced there. In that case you usually file a nonresident return in that state. Because Tennessee has no income tax, there is no Tennessee return on which to claim a credit for that out-of-state tax.
Do retirees owe Tennessee tax on Social Security or 401(k) withdrawals?
No. Tennessee does not tax Social Security benefits, pensions, IRA or 401(k) distributions, or any other retirement income, because it has no income tax to apply. Federal rules still decide how much of your Social Security and retirement income the IRS taxes. The absence of a state income tax is one reason Tennessee ranks high on retiree relocation lists.

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